Resource stocks have been on a tear recently. Not sure if the media or anyone else has been noticing. I haven't seen or heard much press about it.
I was hoping gold would dip below $1100 and wash some more people out but that hasn't happened. At this point I'm not so sure it will happen. Gold and silver has rebounded strongly off of these levels and looks like it wants to run to retest previous highs.
As they say, the hardest thing to do is always the toughest thing to do. So I've forced myself to buy some of the strongest resource stocks that haven't really dipped this last round. Nothing like backing up the truck, but more of nibbling here and there. The easiest thing would have been to do nothing and stare like a deer in headlights.
Here are some of the stocks I like in no particular order.
HL, SVM, SL, SWC, NXG, CEF (bullion fund).
Notice that there are no blue chips of mining like GG, HMY, ABX. I'm not particularly fond of these as they have not shown great relative strength. That is not to say that they wouldn't play catch up at some point. But it's not my cup of tea.
Another way to play the bull market is to sell some puts against stocks that you wouldn't mind owning. Due to the volatility of some of these stocks, you can earn some fat premiums while waiting for them to come in. This is a nice way of buffering your portfolio with some income.
Wednesday, January 6, 2010
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